The following standard cost card is provided for Navid Company's Product A: $\begin{array}{lr}
\text { Direct material (2 lbs.@\$5.00 per lb.) } & \$ 10.00 \
\text { Direct labor }(1 \mathrm{hr} @ \$ 8.00 \text { per hr.) } & 8.00 \
\text { Variable overhead (1 hr. @\$3.00 per hr.) } & 3.00 \
\text { Fixed overhead (1 hr. @ \$2.00 per hr.) } & \underline{2.00} \
\text { Total standard cost per unit } & \underline{\$ 23.00} \
\end{array}$ The fixed overhead rate is based on total budgeted fixed overhead of $12,000.During the period,the company produced and sold 5,800 units at the following costs:
Direct material 12,200 pounds @ $4.80 per pound
Direct labor 5,950 hours @ $8.00 per hour
Overhead $29,920
The standard manufacturing cost per unit is $23.00.What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
A) $23.46.
B) $36.16.
C) $17.96.
D) Cannot be determined from the information provided.

Question

The following standard cost card is provided for Navid Company's Product A: $\begin{array}{lr}
\text { Direct material (2 lbs.@\$5.00 per lb.) } & \$ 10.00 \
\text { Direct labor }(1 \mathrm{hr} @ \$ 8.00 \text { per hr.) } & 8.00 \
\text { Variable overhead (1 hr. @\$3.00 per hr.) } & 3.00 \
\text { Fixed overhead (1 hr. @ \$2.00 per hr.) } & \underline{2.00} \
\text { Total standard cost per unit } &  \underline{\$ 23.00} \
\end{array}$  The fixed overhead rate is based on total budgeted fixed overhead of $12,000.During the period,the company produced and sold 5,800 units at the following costs:
Direct material 12,200 pounds @ $4.80 per pound
Direct labor 5,950 hours @ $8.00 per hour
Overhead $29,920
The standard manufacturing cost per unit is $23.00.What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
A) $23.46.
B) $36.16.
C) $17.96.
D) Cannot be determined from the information provided.

Quizplus · Accepted Answer

The actual manufacturing cost per unit is calculated by adding the actual costs of direct material, direct labor, and overhead, then dividing by the number of units produced. Actual direct material cost = 12,200 lbs * $4.80/lb = $58,560Actual direct labor cost = 5,950 hrs * $8.00/hr = $47,600Actual overhead cost = $29,920Total actual cost = $58,560 + $47,600 + $29,920 = $136,080Actual cost per unit = $136,080 / 5,800 units = $23.46

The Following Standard Cost Card Is Provided for Navid Company's